XML 31 R19.htm IDEA: XBRL DOCUMENT v3.23.2
Stockholders' Deficit
 3 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Stockholders' Deficit Stockholders' Deficit
Each share of the Company’s outstanding common stock is permitted one vote on proposals presented to stockholders and is entitled to participate equally in any dividends declared by the Company’s Board of Directors (the “Board”).
In July 2023, the quarterly dividend was raised from $0.54 to $0.62 per share of common stock for dividends declared on or after such date by the Board. The Company anticipates that it will continue to pay quarterly cash dividends in the future. However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Company's future earnings, financial condition, capital requirements, legal requirements, and other factors.
Share Repurchase Plans
The Board has authorized the repurchase of McKesson’s common stock. The Company may effect stock repurchases from time-to-time through open market transactions, privately negotiated transactions, accelerated share repurchase (“ASR”) programs, or by combinations of such methods, any of which may use pre-arranged trading plans that are designed to meet the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934, as amended. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, corporate and regulatory requirements, tax implications, restrictions under the Company’s debt obligations, other uses for capital, impacts on the value of remaining shares, and market and economic conditions. The ASR programs discussed below were designed to comply with Rule 10b5-1(c).
Effective January 1, 2023, the Company’s repurchase of McKesson’s common stock, adjusted for allowable items, are subject to a 1% excise tax as a result of the IRA. Excise taxes incurred on share repurchases of an entity’s own common stock are direct and incremental costs to purchase treasury stock, and accordingly are included in the total cost basis of the common stock acquired and reflected as a reduction of stockholders’ equity within “Treasury shares” in the Company’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Stockholders’ Deficit. Excise taxes are not reflected in the Company’s remaining authorization for the repurchase of McKesson’s common stock.
In May 2022, the Company entered into an ASR program with a third-party financial institution to repurchase $1.0 billion of the Company’s common stock. The total number of shares repurchased under this ASR program was 3.1 million shares at an average price per share of $321.05. The Company received 2.6 million shares as the initial share settlement, and in August 2022, the Company received an additional 0.5 million shares upon the completion of this ASR program.
In February 2022, the Company entered into an ASR program with a third-party financial institution to repurchase $1.5 billion of the Company’s common stock. The total number of shares repurchased under this ASR program was 5.1 million shares at an average price per share of $295.16. The Company received 4.8 million shares as the initial share settlement in the fourth quarter of fiscal 2022, and in May 2022, the Company received an additional 0.3 million shares upon the completion of this ASR program.
During the three months ended June 30, 2023, the Company repurchased 1.8 million of the Company’s shares of common stock for $673 million through open market transactions at an average price per share of $379.14. Of the total dollar value, $4 million was accrued within “Other non-current liabilities” in the Company’s Condensed Consolidated Balance Sheet for excise taxes incurred during the three months ended June 30, 2023. As of March 31, 2023, the Company had $27 million accrued within “Other accrued liabilities” for share repurchases that were executed in late March 2023, which settled in early April 2023. There were no open market share repurchases during the three months ended June 30, 2022.
The total remaining authorization outstanding for repurchases of the Company’s common stock at June 30, 2023 was $2.9 billion. In July 2023, the Board approved an increase of $6.0 billion in the authorization for repurchase of McKesson’s common stock.
Accumulated Other Comprehensive Loss
Information regarding changes in accumulated other comprehensive loss, including noncontrolling interests, by components for the three months ended June 30, 2023 and 2022 were as follows:
Foreign Currency Translation Adjustments
(In millions)
Foreign Currency Translation Adjustments, Net of Tax (1)
Unrealized Losses on Net Investment Hedges,
Net of Tax		Unrealized Gains (Losses) on Cash Flow and Other Hedges,
Net of Tax		Unrealized Losses and Other Components of Benefit Plans, Net of TaxTotal Accumulated Other Comprehensive Loss
Balance, March 31, 2023$(847)$(14)$(36)$(8)$(905)
Other comprehensive income (loss) before reclassifications67 (15)⁽²⁾7 (2)57 
Amounts reclassified to earnings and other — — — — — 
Other comprehensive income (loss)67 (15)7 (2)57 
Less: amounts attributable to noncontrolling interests— — — — — 
Other comprehensive income (loss) attributable to McKesson67 (15)7 (2)57 
Balance, June 30, 2023$(780)$(29)$(29)$(10)$(848)
(1)Primarily results from the conversion of non-U.S. dollar financial statements of the Company’s operations in Canada and Europe into the Company’s reporting currency, U.S. dollars.
(2)Amounts recorded for the three months ended June 30, 2023 include losses of $20 million related to net investment hedges from cross-currency swaps, which are net of income tax benefit of $5 million.
Foreign Currency Translation Adjustments
(In millions)
Foreign Currency Translation Adjustments, Net of Tax (1)
Unrealized Gains (Losses) on Net Investment Hedges,
Net of Tax		Unrealized Gains on Cash Flow and Other Hedges,
Net of Tax		Unrealized Gains (Losses) and Other Components of Benefit Plans, Net of TaxTotal Accumulated Other Comprehensive Loss
Balance, March 31, 2022$(1,504)$10 $27 $(67)$(1,534)
Other comprehensive income (loss) before reclassifications(176)45 ⁽²⁾18 12 (101)
Amounts reclassified to earnings and other (3)
730 (17)— 24 737 
Other comprehensive income554 28 

18 36 636 
Less: amounts attributable to noncontrolling interests47 — — 3 50 
Other comprehensive income attributable to McKesson507 28 18 33 586 
Balance, June 30, 2022$(997)$38 $45 $(34)$(948)
(1)Primarily results from the conversion of non-U.S. dollar financial statements of the Company’s operations in Canada and Europe into the Company’s reporting currency, U.S. dollars.
(2)Amounts recorded for the three months ended June 30, 2022 include gains of $64 million related to net investment hedges from Euro-denominated notes and gains of $12 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $31 million.
(3)Primarily included adjustments for amounts related to the sale of the U.K. disposal group, as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” These amounts were included in the fiscal 2022 calculation of charges to remeasure the assets and liabilities held for sale to fair value less costs to sell recorded within “Selling, distribution, general, and administrative expenses” in the Consolidated Statements of Operations.